Nigeria’s equities market opens new month on a positive note

Nigeria’s stock market continued on Monday June 1 to enjoy positive patronage even in the face of the rising cases of Covid-19, as well escalating tension between the US and China.

Dangote Sugar topped others on the gainers table after its share price moved from N12.9 to N14.15, up by N1.25 or 9.69 percent.

It was followed by Nigerian Breweries which rallied from N43.3 to N44, adding 70 kobo or 1.62percent; and GTBank from N24 to N24.55, adding 55kobo or 2.29 percent.

Africa’s largest economy is gradually easing the lockdown across majors cities in the country which increases the level of economic activities.

“In our opinion, risks remain on the horizon due to a combination of the increasing number of Covid-19 cases in Nigeria and weak economic conditions. Thus, we continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks”, said market watchers at Cordros Capital.

The NSE All Share Index recorded 0.19 percent increase to 25,316.15 points from preceding day low of 25.267.82 points.

Likewise, the value of listed stocks increased to N13.193trillion from N13.168trillion, representing about N25billion increase. The market’s negative return year-to-date (YtD) stood lower at -5.68 percent.

Market watchers expect the bullish trend to continue on Tuesday, though the possibility of profit taking cannot be ignored. In 4,775 deals, investors exchanged 253,305,908 units valued at N2.647billion.

“We expect a mixed bag of buying and selling interest in the market as the urge to take profit on tickers in the money fuels the supply side while inflows from investors with net OMO maturity spur the demand side”, according to Lagos based analysts at United Capital.